Zhishang Technology GEM IPO: Nintendo secondary supplier, 60 % of the revenue from the founder old owner Foxconn

Produced ｜ Company Research Office

Text ｜ Cooky

Switch and Oculus's secondary parts supplier Shenzhen Zhishang Technology Co., Ltd. (hereinafter referred to as "Zhishang Technology") will be on July 25. The mines are the main underwriters of this IPO.

01. Performance dependence on SWITCH shipments increase or decrease

At present, Zhishang Technology's main business is the research and development and manufacturing of precision electronic parts, including the research and development, design, production and sales of parts such as game consoles, VR/AR equipment, professional audio, communication electronics and automotive electronics Essence

Zhishang Technology's direct customers include Foxconn and Goer's companies, and terminal customers are Nintendo, Sony, Facebook, Senko and other companies.

From 2019 to 2021, Zhishang's science and technology revenue was 462 million, 499 million, and 615 million, respectively, and net profit attributable to mothers was 36 million, 66 million, and 92 million, respectively.

At the end of 2016, Zhishang Technology entered the Nintendo supply chain system by acquiring Chunsheng Electronics. In 2019, the electronic cigarette business was stripped, and the sliding rail products of Nintendo Switch became the company's performance turning point. During the reporting period, the sales volume of sliding rail products produced by Nintendo has increased rapidly, which has driven the company's rapid growth in revenue.

From 2019 to 2021, Zhishang Technology's slip -rail business revenue was 122 million, 272 million, and 304 million, respectively, with a compound annual growth rate of 57.85%, and the income ratio increased from 27%to 50%.

From 2019 to 2021, Zhishang Technology's gross profit margin was 22.62%, 29.59%, and 29.65%, respectively. Among them, the gross profit margin of the sliding rail business was 34.69%, 33.74%, and 38.66%, respectively, and the gross profit margin ranked first in various businesses.

From the perspective of the income structure of Zhishang Technology, the increase and decrease of the shipments of SWITCH products in the future will become a key factor affecting the company's income; if it is successfully listed, it will also affect the fluctuation of stock prices in the secondary market.

02, over 60%of the income from Foxconn

Zhishang Technology's actual controller Chen Chaoxian directly held 31.92%, indirectly held 2.19%, and the total shareholding ratio was 34.83%.

From August 2002 to April 2007, Chen Chao first worked as a project management (planning) work in the consumer electronics business group in the consumer electronics business group. , Development and production business of computers and other products.

In 2007, Chen Chao first left Foxconn to start his own business. In 2011, Shang Shang Technology entered the Foxconn supply chain. It still has a high degree of dependence on Foxconn.

From 2019 to 2021, the revenue from Foxconn was 195 million, 337 million, and 396 million, respectively, and the revenue accounted for 42.18%, 67.52%, and 64.40%, respectively.

03. Because IPHNOE X is not as expected to withdraw 9 million

The terminal customers of Zhishang Technology are mainly consumer electronics companies. The main feature of consumer electronics is that it iterates is fast and the life cycle is short.

From 2014 to 2016, Zhishang Technology entered the Foxconn smartphone industry chain, and provided iPad mini metal processing, iPad's IO interface, iPhone 5C's IO interface production, iPhone6 ​​and iPhone6 ​​Plus' metal processing and iPhone and iPad volume keys keys keys key keys keys and iPad and iPad volume keys. Production and other businesses.

Zhishang Technology has also provided 118 power interface products for iPhone X. In the early days of iPhone X, the relevant company of Apple Chain gave this new model to hold high sales expectations, but market feedback was not as expected, iPhone X output and sales Below the other iPhone series products, resulting in the lack of sales of 118 power interface products.

To this end, in 2019, Zhishang Technology made a full quantities of the inventory balance and price preparation of the 118 power interface, with a total of 90.396 million yuan.

Whether it is the iPhone X, or Switch, Oculus, the sales of such consumer electronics products are not as expected, and it will adversely affect the upstream manufacturer. This is also the risk point in the operation of the technology operation.

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